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The Federal Reserve reported Wednesday that U.S. manufacturing experienced another slow month in April. According to the Fed, industrial sector production declined 0.5% for the month. Manufacturing was down for the second straight month, registering a decline of 0.4%, following a revised drop of 0.3% in March. "Suppliers of numerous manufacturing supply chains such as machinery, nonmetallic mineral products, and fabricated metal products all suffered contractions in production, indicating fundamental factory sector weakness," observed Cliff Waldman, senior economist at MAPI.

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Total construction spending in April rose for the third straight month, with gains in some sectors offset by declines in others, according to a report released by the Associated General Contractors of America based on Census Bureau data. "Residential, private nonresidential and public construction spending all have areas of strength but also pockets of weakness," said Ken Simonson, chief economist of AGC. "While the overall trend remains more positive than last year, growth is likely to be spotty for the foreseeable future."

Boeing will rely on Japanese suppliers to build 20% of its 777X, sources say. Boeing declined to confirm the percentage of work to be performed in Japan. "Supply chain partnerships and production system decisions will be addressed at the appropriate time," said a spokesman for Boeing.

New orders received by U.S. factories fell 0.1% in February, after a 3.3% increase in January, according to the Commerce Department. "It signals a little bit of slowing but not weakness," said Michael Brown, an economist at Wells Fargo Securities. "We're still looking for a modest pace of growth in manufacturing output."

Production at U.S. factories rose 0.4% in February, the sixth monthly increase in a row, while overall production fell 0.1%. "The factory sector continues to be a primary catalyst for the still shaky economic expansion, although the February data hint at a degree of moderation that is consistent with somewhat slower growth in capital spending and exports," said Cliff Waldman, an economist at the Manufacturers Alliance/MAPI.

Excluding automobiles and aircraft, orders for U.S. durable goods rose 2.4% in November, the biggest such increase in eight months, according to the Commerce Department. "With and without transportation, cumulative year-to-date orders are up by approximately 14%, suggesting that the U.S. manufacturing recovery remains on track and that factory output growth will continue into 2011," said Cliff Waldman, economist at the Manufacturers Alliance/MAPI.